Royal Mail Shares

Glen_Clark

Glen_Clark wrote: »

Maybe, but I am struggling to think of any more credible reasons.(for the high demand for RM shares)

Looking at it further it seems New Labour has been trying to make political capital by accusing the opposition of selling public assets very cheap.Now people who haven't read the prospectus think RM really is very cheap.

Vortigern

Glen_Clark wrote: »

I take it you didn't read the Terms and Conditions before offering advice on (X-O's ISA)

I'll read the Terms and Conditions before I open an ISA with them!
Thanks for the info.

Perelandra

Glen_Clark wrote: »

Looking at it further it seems [STRIKE]New[/STRIKE] Labour has been trying to make political capital by accusing the opposition of selling public assets very cheap.Now people who haven't read the prospectus think RM really is very cheap.

Corrected that for you.

(But yes, agree completely with your post, and it's immoral for Labour to be affecting Retail investors in this way).

SnowMan

Given some of the predictions about the likely share price when trading begins, I wonder whether the price could be set above the upper point of the price range of 330p?

It says in the summary prospectus in E3

If the Offer Price is set above the Price Range and/or the number of Ordinary Shares to be sold by the Selling Shareholder is set above or below the Offer Size Range (subject to the minimum free float requirements of the UK Listing Authority), then the Secretary of State would make an announcement via a Regulatory Information Service and prospective investors would have a statutory right to withdraw their offer to purchase Ordinary Shares in the Offer pursuant to section 87Q of FSMA. The arrangements for withdrawing offers to purchase Ordinary Shares would be made clear in the announcement.

Is there any possibility this could be used to set the price above 330p per share?

2010

I`ve just applied (20 minutes ago)through the RM website for some for my partner and it went through OK.

My own view is everyone will get the minimum (£750) then scaling back will take effect.
The gov could allocate more to the retail sector and probably will, but there will still be scaling back.
In Dec. RM will be a certain FTSE100 entry and the funds will have to buy, so this great rush to sell may not be such a good idea.
A 6% divi is on the cards which income funds will want, so they will buy more.

At first I was going to stag but now I`ll hold and see what happens because eventually the market decides.
All this talk of 40% instant profit is just hogwash.
The RM has been around for 500 years

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I can`t see it going anywhere soon.

pine77

I applied at TD direct, my banks etc, they all said they needed minimum 48 hours to process my application before i can start trading...great...

2010

SnowMan wrote: »

Given some of the predictions about the likely share price when trading begins, I wonder whether the price could be set above the upper point of the price range of 330p?

It says in the summary prospectus in E3

Is there any possibility this could be used to set the price above 330p per share?

They could alter the price upwards but that would cause more problems than it`s worth.
Also I think you can reject you application.

The gov paid advisors £21 million for advice and this is the result.
On Thursday the gov officials sit down with the advisors to decide the price.
The advisors say you can get 330p the gov says no that`s too much we have an election to think about and want to keep the public happy 300p will do.

planteria

Doshwaster wrote: »

It's in the long term that I don't have huge faith in the value of RM as an investment.

me too. seems like a quick profit is likely, but not sure i want to hold them long term.

jimjames

2010 wrote: »

All this talk of 40% instant profit is just hogwash.
The RM has been around for 500 years

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I can`t see it going anywhere soon.

If the price is at the top end of the range (which seems likely) then I think there may be a few disappointed people expecting to sell out for 40% profit that won't exist.

Even if they did rise 20% that would be from £750 to £900. With £25 dealing fees the minimum investor would have made £125. Much easier ways to do that with less risk - like opening a First Direct account!

planteria

gadgetmind wrote: »

My biggest worry isn't the RM's business model (parcels delivery is replacing falling letter deliveries) but their oppressive unions, which are a real drag on performance.

very good point. it's potentially an enormous problem.